C&TS Money Issues (the good, the bad, and the ugly)

Rod asked whether there is sufficient money available to "overhaul" 484. The short answer is yes, especially if one means the project to "rebuild" the 484's boiler in conformance with the FRA's Part 230 Form 4 requirements. Based upon past experience (4 K-36's 2004 to 2008) a project of that scope cost about $300,000.

Producing that kind of estimate, based upon past experience and required records, is not normally the job of the Executive Director. That is the job of the Operator, however defined. If the Operator at the meeting were RGRPC or CTSMC answers would have been forthcoming, but with the "HRM-situation" things were, shall we say, problematic. In the future those kind of figures will logically come from John Bush as head of the Commission's operating entity.

One very important distinction is that monies for the C&TS come primarily from two separate and distinct sources which cannot by law and contract be intermixed: (1) capital funds from the two states and federal and private grants, and (2) operating funds from ticket revenues to cover payroll, marketing, and all other operating expenses.

The C&TS has money for capital projects like the 484 boiler work, but has little operating funds in reserve to get to the start of the next season due to the failure of HRM's marketing efforts to attract sufficient paying passengers in 2012.

Be aware that HRM projected regular ridership for the SEASON at 38,464, but the actual count ended up somewhere around 29,000 (I'm pretty certain that Ken Matzick's 26,258 figure was for the fiscal year beginning July 1). That shortfall works out to a ticket revenue loss approaching $1 million (ugh). So the Commission has an ugly short-term working-capital problem on the operating side, but no problem funding the 484 work.

This has been the Commission's funding dilemma for years now. As a consequence, the C&TS's properties (track, locos, buildings, and structures) are now in the best shape ever, but the railroad remains overly dependent upon ticket revenues to sustain operations. The good news is that the current Commission is quite resourceful and has been taking all the right actions to recover from the 2012 debacle.